The Financial Collapse of 2001 Unwinding Message Board

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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: elmatador who wrote (2785)	7/11/2019 2:41:42 PM
From: Elroy Jetson	1 Recommendation Recommended By sixty2nds Read Replies (1) of 13801

French government bonds are being bought by someone at a premium so they trade at slightly negative interest rates. Let's see if we can figure out who the buyer is. If you live in France, ING Direct offers you 1% on your everyday savings account and 3% on a 12 month CD - and four banks offer even higher rates, including PSA Banque. No one in France is going to give up their 3% CD to buy a ten year government bond at negative 0.13%. No one except . . . the European Central Bank, newly under the control of Christine Lagarde who recently left her prior job as the head of the IMF. Lagarde has understandably highly praised negative interest rates - because she's the buyer who bid up the price on the auction of French bonds to negative rates. - bloomberg.com Lagarde, as head of the ECB, has been busy buying the government bonds of a number of European nations. The ECB can easily afford this as they're in the business of printing money. These negative bond rates are the cleverness of her Harvard-trained Irish economist, Philip R. Lane, who is the chief economist for the ECB. It's a new style of "quantitative easing".

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